Multigenerational HOMES Act

Homeowner credit for multigenerational renovations

If enacted, this bill would create a new personal income tax credit equal to 15% of qualifying multigenerational renovation costs. The credit would have a $7,500 lifetime cap per dwelling unit, reduced by any prior credits for that unit. Eligible costs would include tangible safety, mobility, or accessibility equipment, onsite installation labor, and inspections required by state or local law. The dwelling must be your principal residence or a secondary unit on the same property in the U.S. or a U.S. territory. A qualifying relative must meet the bill's relationship rules, be age 65 or older or disabled, live there for more than half the taxable year, and have their TIN on your return. A safe harbor would let that person move in up to one year after the improvements are finished. The credit would phase out based on modified AGI above $200,000 ($400,000 for joint filers) over a $75,000 range. If your AGI does not exceed the area's median gross income, the credit would be treated as refundable under Subpart C. Any unused credit could carry forward for up to five years, subject to your applicable tax limit for the year. The rules would apply to tax years beginning after December 31, 2026, and the cap and phaseout thresholds would be indexed for inflation after 2027. You would need documentation the Secretary may require to substantiate expenditures.